Reference no: EM133771044

Football Uniforms Case Study

Earlier in the summer, you have become principal of a prominent high school. It is the Friday night of your first varsity football game. Your varsity takes the field and they look sharp. All players are wearing nice spotless uniforms. The game is a resounding victory for your team. After the game, you congratulate your head coach. He is naturally excited and he tells you he appreciates your support and is especially grateful for the new football uniforms that the team wore that night.

A week later, your bookkeeper says she needs to speak with you. There is a bill for $15,000 for Starling's Sporting Goods for new football uniforms, but there is insufficient money in the schools account to cover the expense. To make matters worse she can find no purchase orders for the uniforms. You are somewhat perplexed. How can a school order football uniforms without a purchase order?

Starling Sporting goods is a major supplier of athletic supplies to the school system and has done business with the system for many years. You decide to call Starling's representative to see if he can shed any light. He tells you that yes his company did ship the uniforms and they were delivered to your school two days before the game. He says he will have to look at the records for the order.

You then speak with your head coach. He tells you that he had a discussion with the booster club president who said that the club thought it would be a good idea for the team to get new uniforms. The booster club president told the coach that he should go ahead and order the uniforms. The coach says he called Starling and placed the order. He was delighted when the secretary had said they were here.

You then call the booster club president. He says he remembers having the conversation with the coach and he also states he told the coach that the booster club would help raise the money for the uniforms. In fact, the booster club used a local community football team's game, had a barbecue, and raised about $2500 when they advertised that the funds raised would go to buy your school's new football uniforms. He thinks, but is not sure the money was deposited in the booster club's account. About an hour later, the booster club president calls you back and informs you that there was about $2500 raised, but the money had not been deposited in the account. To make matters worse, he is not sure who has the money.

Later in the week, the sales representative says he cannot find a purchase order, but has noted a phone call from the head football coach at the school who told him to send the uniforms to the school. He also has the UPS slip showing that the school received all of the uniforms. He wonders, since the school received the uniforms and the team wore them during the game, when would his company receive its check to cover the bill. You reply that you will get back to him.

Things begin to get busy at the school. The team begins to loose and attendance is way down at the games. You forget about the bill. Next month there is a letter from Starling Sporting Goods about the uniforms and wanting their payment. It is also copied to the central office.

Questions

1. What are the issues in this study?

2. What action do you take?